China Mobile on Wednesday said it will acquire a 15.5% stake in Hong Kong-based broadband service provider HKBN for HK$1.20 billion ($154.64 million) through its regional unit.
Under the deal, China Mobile Hong Kong (CMHK) will purchase approximately 145 million shares from TPG Wireman for about HK$758.2 million.
It will also acquire debt owed to TPG Wireman by HKBN by converting it into 83.7 million shares, for HK$437.5 million. Upon completion, TPG Wireman will hold no shares in HKBN.
The deal gives China Mobile, the world’s largest wireless carrier by subscribers, a stake in one of the largest telecommunications operators in Hong Kong that it first expressed interest in acquiring for almost two years ago.
State-owned China Mobile has been looking to extend its footprint outside mainland China.
Reuters reported in January that U.S.-based infrastructure investment firm I Squared Capital was weighing an offer that valued HKBN at up to $1 billion (7.76 billion Hong Kong dollars), trumping China Mobile‘s HK$6.86 billion offer.
Earlier in the day, Bloomberg News reported I Squared Capital’s potential offer for HKBN has hit an obstacle as it tries to convince China’s sovereign wealth fund of the merits of the deal, citing people with knowledge of the matter.
Reuters
